Murphy Oil(US:MUR)2025-01-30 11:08Financial Performance - Murphy Oil Corporation reported a net income of $50 million, or $0.34 per diluted share, for Q4 2024, and a full-year net income of $407 million, or $2.70 per diluted share[1][2][10]. - Total revenue from sales to customers for Q4 2024 was $669.6 million, a decrease of 20.5% from $842.3 million in Q4 2023[55]. - Net income attributable to Murphy for Q4 2024 was $50.3 million, down 56.7% from $116.3 million in Q4 2023[59]. - Operating income from continuing operations for the year ended December 31, 2024, was $602.6 million, a decline of 42.3% compared to $1,042.0 million in 2023[55]. - Total revenues for the year ended December 31, 2024, were $3,028.5 million, down from $3,460.2 million in 2023, representing a decline of 12.5%[75]. - Adjusted EBITDA attributable to Murphy for the year ended December 31, 2024, was $1,519.5 million, compared to $1,901.0 million in 2023, reflecting a decrease of 20.1%[66]. - The net income from continuing operations for the year ended December 31, 2024, was $489.3 million, down from $725.2 million in 2023, a decline of 32.5%[75]. Production and Operations - The company achieved a record high peak gross production rate of 496 MMCFD in Tupper Montney and averaged 175 MBOEPD in Q4 2024[8][11]. - Net crude oil and condensate production for Q4 2024 was 91,460 barrels per day, a decline of 8.6% from 100,079 barrels per day in Q4 2023[88]. - Total net production (BOEPD) excluding noncontrolling interest is projected to be between 159,000 and 167,000[98]. - Full year 2025 guidance for total net production (BOEPD) excluding noncontrolling interest is estimated to be between 174,500 and 182,500[98]. - Production from the United States – Eagle Ford Shale is 18,300 BOPD and 21,400 BOEPD[98]. - Production from the Gulf of Mexico excluding NCI is 51,400 BOPD and 57,500 BOEPD[98]. - Canada – Tupper Montney production is 336,000 MCFD[98]. - Kaybob Duvernay production includes 2,300 BOPD and 3,900 BOEPD[98]. - Offshore production is reported at 10,900 BOEPD[98]. - Other production contributes 200 BOEPD[98]. Capital Expenditures and Investments - Murphy's capital expenditures (CAPEX) for Q4 2024 totaled $186 million, with full-year CAPEX amounting to $953 million[9][12]. - The 2025 CAPEX guidance is projected to be between $1,135 million and $1,285 million, with expected production of 174.5 to 182.5 MBOEPD[27][28]. - For the Eagle Ford Shale, the company plans to spend approximately $360 million in 2025 CAPEX, with $275 million allocated to drill 34 operated wells and bring online 35 operated wells[38]. - In Canada, approximately $140 million of the 2025 CAPEX is allocated, with $65 million for drilling 8 operated wells in the Tupper Montney and $50 million for 6 operated wells in the Kaybob Duvernay[39]. - Total capital expenditures attributable to Murphy for Q4 2024 were $185.8 million, down 22.8% from $239.5 million in Q4 2023[84]. - Total capital expenditures for the year ended December 31, 2024, were $952.8 million, a decrease of 10.5% compared to $1,067.9 million in 2023[84]. Shareholder Returns - The company announced an 8% increase in the quarterly cash dividend to $0.325 per share for 2025, resulting in an annualized dividend of $1.30 per share[5]. - Murphy repurchased $300 million of shares in 2024, totaling 8.0 million shares, and had $650 million remaining under its share repurchase authorization[13]. - Murphy allocates a minimum of 50% of adjusted free cash flow to shareholder returns, primarily through buybacks, while maintaining a $1.0 billion total long-term debt goal[47]. Debt and Liquidity - As of December 31, 2024, Murphy's total debt was $1.27 billion, with a net debt to total capital ratio of only 13%[16][17]. - The company entered a new five-year senior unsecured credit facility of $1.35 billion, enhancing liquidity by nearly 70% compared to the previous facility[15][17]. - Total liabilities rose to $4.33 billion in 2024, compared to $4.22 billion in 2023, marking an increase of 2.6%[86]. Exploration and Reserves - Murphy maintained preliminary proved reserves of 713 MMBOE at year-end 2024, with a reserve replacement ratio of 83%[18]. - The company has allocated approximately $145 million to its 2025 exploration program, including drilling two operated exploration wells in the Gulf of Mexico and additional wells in Côte d'Ivoire and Vietnam[34]. - The company drilled an oil discovery at Hai Su Vang-1X in offshore Vietnam, encountering approximately 370 feet of net oil pay from two reservoirs[4][24]. Costs and Expenses - Total costs and expenses for Q4 2024 were $585.8 million, a decrease of 8.7% from $641.4 million in Q4 2023[55]. - Lease operating expenses for Q4 2024 were $220.2 million, compared to $196.8 million in Q4 2023, reflecting an increase of 11.9%[78]. - Lease operating expenses for the year 2024 were $937.0 million, up from $784.4 million in 2023, indicating an increase of 19.5%[80]. - The average lease operating expense per barrel of oil equivalent sold for Q4 2024 was $13.12, compared to $11.00 in Q4 2023, reflecting an increase of 19.2%[82]. Impairments and Adjustments - The company incurred an impairment of assets of $28.4 million in Q4 2024, compared to no impairment in Q4 2023[59]. - The impairment of assets for the year ended December 31, 2024, was $62.9 million, compared to no impairment in 2023[71]. - The total adjustments for Q4 2024 resulted in a net adjustment of $6.7 million, compared to a net adjustment of $49.0 million for the year[63]. Forward-Looking Statements - The company emphasizes that forward-looking statements are subject to risks and uncertainties, including macro conditions in the oil and gas industry and geopolitical concerns[50].